CYBG starts to float

CYBG starts to float

Clydesdale and Yorkshire Bank has officially started floating on the London Stock Exchange as an independent banking group for the first time since 1920.

The lender - now known as CYBG - was forced to put the brakes on its initial public offering (IPO) for 24 hours last Tuesday following a "specific request" for more information from a credit ratings agency.

The high street bank is being spun out of the National Australia Bank (NAB), which saw its shares come under pressure on the Australian market after the float prices for Clydesdale Bank came in at the low end of estimates, at 180p.

Speaking on the announcement, David Duffy, chief executive officer, said: "Today, CYBG has become a fully independent banking group for the first time since 1920 and it is a privilege for me to be leading the business at this pivotal moment in its 177 year history. 

“We are the only UK banking group to have a dual listing in London and Australia and we have an enviably strong and supportive shareholder register which includes blue chip institutions and individual investors across Australia, the US and here in the UK.

"With the demerger and IPO successfully completed, I am confident that CYBG starts life as a listed company in great shape. 

“Our large and loyal customer base and highly experienced team provide a strong platform from which to grow and we will present a very real challenge to our competitors here in the UK. 

“Now everyone at CYBG - our board, the leadership team and every one of our employees - will focus sharply on creating an even better bank for our customers and our new shareholders." 

Jim Pettigrew, chairman, added: "Beginning life today as a newly independent listed company for the first time in almost a century and with a new shareholder base that truly does span the globe, we are uniquely positioned as the largest of all the UK challenger banks.

“With a clear customer-focused strategy being driven by one of the best management teams in banking, I am confident that CYBG has a strong and exciting future ahead."

The majority of the demerged bank is still owned by Australian group NAB, but 25% of the stock is being sold to new investors.

It is being listed on the London Stock Exchange and the Australian Securities Exchange.